TechLogix turns one year old this month, and after a successful year of innovation the founding team sat down to discuss what they've learned and what trends they see.
Fiber is the future and it's growing even faster than we anticipated. We launched TechLogix under the premise that 18G technology would drive the need for fiber optic infrastructures, and we saw a distinct lack of suppliers in the channel. Companies like Cleerline have been offering cabling for years, but very few firms offered fiber-compatible electronics that actually work with AV signals.
After one year, our top selling product is the TL-FO-HD and sales continue to outpace projections.
Don't underestimate the power of end-user needs and their problems. We were quite surprised to hear specific AV integrator’s critique of our collaboration and classroom products. Their concern is that integrators want to integrate, and an "all-in-one" kit removes the custom process from the installation. That said, the Share-Me™ Series has quickly become one of our most popular products in large part due to end-user request, and end-users are the pull for sales through our resellers. Our intention is to build value with our solution and profitability for integrators.
We developed our collaboration products to address late meeting trends and user technology apprehension and clearly the market has responded--we've seen our technology followers grow from 24 to over 13,000 in the course of one year.
Commodity electronics aren't that exciting. We've been a little surprised at the lack of market enthusiasm over general commodity products--splitters, twisted pair extenders, converters, etc. TechLogix is still excited about it. Our enthusiasm may be overzealous but we’re a bit crazy like that. Where we have conveyed that excitement is in our order process and turn around. We are shipping 97.4 % of our orders with same day turnaround. While we hope for more excitement on “me too” product, our delivery is “Best in Class”.
But there are still major opportunities for differentiated commodity products. Commodity products in general may be weaker selling than expected (at least for TechLogix), but those with differentiated features have been a bright spot. We've been surprised at the reception for audio/mixer amps, which is definitely a category rife with competition. The TL-A8O-20W is actually our third overall best selling product.
AV over IP is the future....and there's lots of room for innovation. There's been no shortage of manufacturers entering the AV over IP space, and TechLogix is no exception. We've opted to focus on the high-end of the market--18G HDMI support, fiber optic transport, no latency, etc.--and it's been surprising to see a product that was forecasted as niche finding its way into major projects in both the residential and commercial markets.
In our opinion, AV over IP has rapidly become a commoditized category and most suppliers are doing the same thing. There is definitely room for innovation and differentiation, and we've certainly garnered some attention for thinking outside the box.
Automation is the future of control. We've been particularly pleased at the reception of automated control technology. We expected a strong response from the actual users of meeting rooms and classrooms, but we didn't expect quick adoption from the integrators who are used to touch panels and traditional remote controls.
In our opinion, hands-free remote control is the future of room control. Yes, voice control will increase in demand, but automation without any focused user interaction will explode in the coming months.